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Fiat Currency: Storm Trooper Of Inflation Fiat Currency: Storm Trooper Of Inflation May 8, 2014 | Author: Wallace Eddington | Posted in Business

Inflation is an old scourge. History reveals its devastating consequences time and again. The same story is ever repeated: armies that allow rulers to rule, and armies need money to buy the weapons and pay the troops. However, once you have an army, and rule a society Authentic Tampa Bay Rays Jersey , commandeering its money supply is as simple as it is elementary. And, thus, inflation follows like the predictable hangover after a night of inebriated excess. The Roman Empire showed us how it’s done.


Between the regimes of Augustus and Diocletian Roman troop numbers more than doubled: from 250,000 to 600,000. An indication of the degree to which inflation funded this massive military is the fate of the Roman currency, the denarius. It was so utterly debased by a long string of Roman rulers that, when Diocletian came to power, the formerly silver coin was reduced to a copper plated token. By A.D. 268 it had fallen to one five-thousandth of its original value. Roman trade was already deteriorating into barter. Meanwhile, the middle class was rapidly eroding.


Diocletian recognized the heavy toll of centuries of inflation through the abuse of the fiat currency. In an effort to build up the Empire’s coffers Authentic St. Louis Cardinals Jersey , he decreed payment of taxes be in goods. Furthermore, in an ill-conceived effort to address the effects rather than the cause of Rome’s chronic economic malaise, all manner of price, wage, production and anti-hoarding regulations were imposed.


The most dramatic of these regulations was his A.D. 301 Edict, which prescribed the death penalty for violators. Though much bloodshed resulted, the Roman economic implosion through inflation continued to run rampant. In that A.D. 301 Edict, Diocletian fixed the price of gold at 50,000 denarii per pound. By 337 Authentic Seattle Mariners Jersey , the year of Constantine’s death, a pound of gold brought 20,000,000 denarii!


What is generally considered the final century of the Roman Empire (at least the Western Empire) was characterized by economic decay and social deterioration. Roman’s abandoned the market economy in droves. Being forced by law to treat a coin as having a value which it simply did not made rational economic activity almost impossible – without breaking the law. Some fled the country. Others entered voluntary serfdom – escaping the cash economy. The feudal system of Europe is frequently explained as a consequence of the collapse of a sophisticated economy after the fall of Roman civilization. In fact, tho. Cheap Jerseys Wholesale Jerseys From China Cheap NBA Jerseys Cheap Jerseys From China Cheap NFL Jerseys Wholesale NFL Jerseys Wholesale NFL Jerseys China Wholesale Baseball Jerseys Cheap Nike NFL Jerseys Wholesale NFL Jerseys
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